How to Interpret FICO Scores

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FICO scores are the language that credit bureaus use to talk about the risk an individual has based on their credit. Find out what is considered to be a low, poor credit risk FICO score with help from a registered financial consultant in this free video on money management.

Part of the Video Series: Money Management
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Video Transcript

This is financial adviser Patrick Munro talking about to interpret FICO scores. FICO scores are really the language that the credit bureaus use to talk about the risk that individual has whether they have good credit or bad credit. The FICO score, if it's low, and the lowest one available is 300, that means that the individual is not a good credit risk. A mid-range credit score starts to come in around 620. And that's average credit, and you're still paying higher interest than an excellent credit score. It's at this 620 range where an individual can start working on their credit and making it better. The way to do that is to get a copy of your credit report. The way to do that is to send letters to each of the three credit reporting agencies, Experian, TransUnion and Equifax, and request that report using your social security number. And once you start to trim balances and pay items even quicker, you can move up into the 700 range, very good credit there, and into the 800 range, excellent credit. This is Patrick Munro talking about how to interpret FICO scores.


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